People who farmed the lands under the federal system were called

Sharecropping

Explanation:

Sharecropping became widespread in the South as a response to economic upheaval caused by the end of slavery during and after Reconstruction. Sharecropping was a way for poor farmers, both white and black, to earn a living from land owned by someone else.

Agricultural Subsidy

Explanation:

This is the term for when farmers are funded by the government.